money supply, banking & financial institutions section 4 MCQ Questions & Answers Detailed Explanation

Question : 1

Narsimhan Committee was related to which of following reforms?

a) Tax structure reforms

b) Planning implementation reforms

c) Banking structure reforms

d) High education reforms

Question : 2

The Prevention of Money Laundering Act came into force in India during

a) 1999

b) 2005

c) 2001

d) 1998

Question : 3

Convertibility of the rupee implies

a) freely permitting the conversion of rupee to other major currencies and vice-versa

b) developing an international market of currencies in India

c) allowing the value of the rupee to be fixed by market forces

d) being able to convert rupee notes into gold

Question : 4

If a country has a ‘Pegged’ (fixed but adjustable) exchange rate, then consider the following statements:

1. Inflation in the country may make its exports less competitive
2. If the country devalues its currency in proportion to the inflation then its exports may remain competitive

a) (ii) only

b) Both (i) & (ii)

c) (i) only

d) Neither (i) nor (ii)

Question : 5

Which among the followings is the type of inflation?

1. Demand Pull Inflation
2. Cost Push Inflation
3. Stagflation
4. Hyperinflation

a) 1, 2

b) 1, 2, 3, 4

c) 3, 4

d) 1, 4

Question : 6

The Apex bank for providing Agricultural Refinance in India is

a) NABARD

b) SBI

c) LDB

d) RBI